Primary Dealer

The government doesn't like to work with a lot of people...at least when it's selling bonds. In that way, it's like one of those mob bosses who only meets with his immediate lieutenants.

In the government's case, though, the reasoning has nothing to do with wire taps or informants. It just has trillions of dollars to move around, and doesn't have time to deal with you trying to buy $100 in Treasury bonds for your nephew's first birthday.

When the U.S. government looks to sell securities (like notes or bonds), it doesn't go directly to the market. Instead, it finds a set of intermediaries, who buy a large volume of the securities. These buyers are known as the primary dealers (banks and other large financial institutions, mainly). Once they purchase the bulk-sized portion of the bonds, they turn around and sell smaller lots to regular retail customers.